New Delhi: Government Wednesday raised Rs 260 crore from sale of its 4.01 percent stake in Hindustan Copper with the issue being over-subscribed well before closure of markets.

The issue attracted bids for over 4.38 crore shares as against a total number of over 3.71 crore shares on offer, at a base price of Rs 70 apiece.

"The issue was subscribed 1.18 times. The approximate gross receipts on allotment would be Rs 260 crore," an official statement said.

Hindustan Copper is the second successful disinvestment in the current fiscal. Last month the government had sold 9.33 percent stake in MMTC to rake in Rs 568 crore.

However, shares of the company took a beating on the bourses and fell 3.10 percent to close at Rs 70.40 on the BSE. On the National Stock Exchange, Hindustan Copper (HCL) closed at Rs 70.20, down 2.97 percent.

Over 15 lakh shares changed hands on both the bourses.

The government holding in HCL has come down to 90 percent post disinvestment. The stake sale made the company compliant with the minimum 10 percent public holding norm of market regulator SEBI.

The sale of 4.01 percent stake, or over 3.71 crore share, was undertaken through offer for sale (OFS) route.

The base price of Rs 70 was fixed at a discount of 3.65 percent over yesterday's closing. A panel of ministers, headed by Finance Minister P Chidambaram, had decided on the price for the share sale.